This transcript has been automatically generated and may not be 100% accurate.

... I ... reported this morning S A C Capital treater Michael Steinberg was arrested outside his apartment looking at video there ... we are now able to tell you that he's been charged with conspiracy to commit securities fraud ... and four counts of securities fraud as well ... Michael Rothfeld has been falling the story and joins me now Michael an interesting ... twist here to this ongoing investigation into the top hedge fund tell us about this arrest morning in what we know ... well Mr. Steinberg was taken into custody at about six o'clock in the morning by FBI agents and ... he had been under investigation we knew that based on past cases this name come up with someone who did some of the same trends and other people were charged with insider trading ... had done and done ... he is a long time is the most senior Assisi capital employee among a number of been charged ... with insider trading has been working there for ... a sixteen year since nineteen ninety seven and he's been close to Steve Cullen The billionaire founder of the CCM and has worked with them and advise them at that point so it's kind of you know it's a it's a major development in this ongoing investigation to bring the charges I'm here and what exactly he's been accused of doing ... he's been accused of Trading based on the head and analysts working for him named John Horvath who is ... who has pleaded guilty was cooperating ... and that the authority said that for a bath was a member of this what they called the criminal club the prosecutor said ... and these were analysts at different hedge funds into them would ... get tips allegedly from different sources and share them the kind of cool information and they give them ... to some of the managers of some of the other portfolio managers at the other hedge funds ... were convicted last year based on trading Intel ... Nvidia these two technology companies said Mr. Steinberg is charged with trading so those of the Israeli writer spring corrects down and out I think one point four million in the criminal charges that the prosecutors have said that sign for the ... firm's trading illegally based on ... for that skips ... the SCC has included some other ones seem stocks just ... more other incidents and they say it's about six million dollars in illegal trade and then the rules on civil charges are are more lenient ... so they're they're cases will march that's the ... way yet it's end of this comes on the heels of a ... I agreement that if a C Capital had put forth to pay over six hundred million dollars to settle the charges civil charges that the SCC where does that stand I know and the judge recently ... ruled by Mr. Li's have that taken some things into account what's with the Sabbath write two weeks ago at CC agreed to pay six hundred and sixty million to settle two cases ... as to the hedge fund not to individuals likes timer works Mr. Cohen ... and ... that's actually a record ... one of the cases six hundred and two ... million dollars the largest the SEC's said ever ... for insider trading but a judge on ... Friday yesterday Thursday said he was a willing yet to approve that because ... Assisi didn't admit or deny wrongdoing and there's been a lot of discussion about ... S E C settlements where ... you know ... companies don't have to admit that they did anything wrong in some judges have added some money that ... so that he was looking about twenty years I need to these charges crack if convicted on and do you think that the FCC is really looking at the pertaining to the Steve Cohen and would have happened whatever defects in another sometime limitations right well ... so twenty years is the max for the securities fraud charges in reality people will do a lot less because ... federal sentencing guidelines it's like how much illegal profit to make but ... Mr. the that federal prosecutors to do the criminal ... cases along with the FBI ... are ... looking at Collin in connection with the other ... trade not this not this one but the six hundred million dollar one which was ... a case in which ... they traded and pharmaceutical companies before clinical drug trial Collins Steve Cullen himself the founder actually did some of the trading ... one of his portfolio managers is charged in that case ... the government would like and to flippin and Brad outgoing that he's pleaded not guilty so ... enchiladas of two thousandeight is when those trades occurred that's ... approaching five years ago which is the statue limitations so essentially ... in that case they haven't told to lie if they wanna charge Steve Cullen with trading illegally in those